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Ethereum Vehicles Attract $36 Million After ETF Greenlight
US SEC approvals of Ethereum ETFs have improved investor sentiment towards cryptocurrencies’ second-largest asset, leading to a two-month high of net inflows.
Ethereum (ET) investment products saw inflows of $36 million last week for the first time since March, according to a May 28 CoinShares report. The increase in net inflows comes as the U.S. Securities and Exchange Commission (SEC) approved Forms 19b-4, signaling a green light to proposed rule changes that allow national exchanges to list spot ETH ETFs.
News of the approval led to a 30% increase in Ethereum’s price over the course of the week, pushing its market capitalization to $450 billion and approaching $4,000 per token. This rally marked a change in positive sentiment after 10 weeks of bearish activity.
CoinShares Analysts said the surge was likely an early reaction to the approval news, but a continuation of the upward price trend remains unclear with actual spot trading of the ETH ETF still weeks away.
Ethereum inflows rebound with the broader investment market
The ETH vehicle inflows coincided with a three-week streak for digital asset investment products. Last week, investors amassed $1.05 billion in net capital across several cryptocurrency-based funds.
While Ether is likely in focus, most investments have flowed into US Bitcoin (Bitcoin) ETFs. The region saw weekly inflows of $1.03 billion, largely made up of BlackRock’s $719 million iShares ETF.
Improved investor demand for these cryptocurrency investment channels has increased cumulative year-to-date flows to a new record of $14.9 billion.